OCSEA members impacted by phasing out state income tax

A Columbus Dispatch article today says what unions already know: phasing out Ohio’s income tax will cost a lot of money – starting with $814 million next year and $12 billion by 2020.

Analysts say they can’t tell how the state budget would be impacted but say that of that $12 billion figure, $11.5 billion would come from the general revenue fund. This, of course, would have a huge impact on vital services to Ohioans.

John Kasich is running on the platform of phasing out the state income tax. He also announced his running mate, State Auditor Mary Taylor, today.

Two big unions debating lending support to Senate health care reform bill

Some large labor groups are meeting to discuss whether or not to support the Senate's version of the health care reform bill, which has undergone too many concessions in the past few days.

The SEIU and the AFL-CIO are both meeting today to make some important decisions. Both are considering doing little to help the bill pass, or maybe even not supporting this bill at all at this point. Both organizations are extremely disappointed with the actions of Democratic leadership in the matter, particularly that of Independent Sen. Joe Lieberman who pulled a 180 on his stance on the bill.

However, leadership says they still support the House bill, which maintains some of the key components labor wants to keep in the end. They wish for a public option to make it into the final bill and for an excise tax on benefits to stay out of it.

AFSCME is asking union members to call Congress this week, and especially on Thursday, Dec. 17. Urge Representatives to stand strong on real health care reform.


Keep following the debate at http://www.ocsea.org/hcan.

State revenues drop nationwide; Ohio needs budget solution now

Despite signs of national recovery sprouting this fall, economists anticipate that state governments' current struggle with withering revenues will continue for at least another two years.

In fact, a study of 44 states released Nov. 23, 2009, by The Nelson A. Rockefeller Institute for Government (PDF) indicated a decline last quarter for all three revenue sources. Ohio experienced the following declines: personal income tax (-14.1%), sales tax (-9.2%), and corporate tax (-111%). These numbers are not shocking when you consider the number of people in your family, neighborhood, and community who are jobless. For me, it's my cousins Bryan and Scottie and my good friend and neighbor Lisa... and that's just my small circle.

Meanwhile, lawmakers and number crunchers toil to figure out how to pay for public services, including those with increasing price tags such as education and corrections, according to another new study reported Nov. 28, 2009, by the National Conference of State Legislatures.

The state fiscal situation continues to generate difficult and often painful choices for lawmakers. They were compelled to close a cumulative budget gap of $145.9 billion in the process of crafting their FY 2010 budgets. But their actions were not enough to cover continued lackluster revenues. Thirty-six states already report another round of gaps since FY 2010 began. The total now hit $28.2 billion, and the fiscal year for most states doesn't end until June. 

“The states are facing nearly unprecedented declines in revenue collections,” said William Pound, executive director of the NCSL. “Coupled with probable declines in federal stimulus support over the next two year, the state fiscal picture is bleak. We’re heading into an era of retro budgeting, where state spending is receding to levels five to 10 years ago.”

With a budget fix still stalled in the State Senate this week, OCSEA leaders warn that a budget impasse hurts all Ohioans and Ohio needs to generate new revenue or put vital services at risk.

“These lawmakers need to stop playing chicken with the state budget. The bill is simple; it’s straightforward and will get the job done. Anything else is just muddying the waters,” said OCSEA President Eddie L. Parks.

Keep up on union budget news at www.OCSEA.org/budget.